XAUUSD hit a two-week low in yesterday's trading session before recovering, currently trading around $3,330/oz, up slightly by about 0.14% on the day. The main reason was the ceasefire between Iran and Israel, which curbed demand for safe-haven gold. In addition, Federal Reserve Chairman Powell made hawkish comments, which also affected the gold price trend.
Israel and Iran reach ceasefire agreement
A ceasefire came into effect on Tuesday under pressure from US President Donald Trump, raising optimism that the biggest military conflict between the two arch-rivals in the Middle East may be coming to an end.
The easing of tensions in the Middle East has been a major factor in the pressure on gold. Risk sentiment has weakened and the market has entered risk-on mode.
US President Trump announced on Monday evening that Israel and Iran had reached an agreement on a “complete and total ceasefire”. Iran’s state TV officially announced on Tuesday that Iran had ceased fire with Israel.
Israeli Defense Minister Israel Katz announced earlier Tuesday that the Israeli military would launch a new wave of strikes on targets in Tehran in retaliation for Iran's missile launch and "blatant violation" of the ceasefire.
The Israeli government said that Israel would hold off on further strikes on Iran after Prime Minister Benjamin Netanyahu spoke with US President Trump.
Powell sends important signal
Federal Reserve Chairman Powell will testify before the House Financial Services Committee on Tuesday and deliver a report on the Fed’s monetary policy. Powell will also testify before the Senate Banking Committee today (Wednesday).
In congressional testimony on Tuesday, Powell said the Fed needs more time to see whether tariffs are causing inflation to rise further before considering cutting interest rates.
In congressional testimony, Powell said he and most Fed officials expect inflation to rise soon and that the Fed is in no rush to cut rates before then.
“We are now in a very good position to wait and see what the likely path of the economy is before considering whether to adjust the policy stance,” Powell said.
Markets generally believe that the July 29-30 meeting is unlikely to result in a rate cut, with the first rate cut expected in September.
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Technical Outlook Analysis
XAUUSD With the current technical position, gold has not yet had a complete short-term trend as the price action is still around the EMA21 moving average, and the RSI is operating around the 50 level.
With the current price action showing that the market is still hesitant, gold may enter a sideways accumulation phase.
However, in terms of the long-term trend, gold is still in a long-term uptrend channel with the case for a complete downtrend to occur is the condition that the price action is taken below the raw price point of 3,300 USD. Then the downside target is the 0.50% Fibonacci retracement level in the short term.
During the day, the trend of gold is neutral with the expected operating range between 3,350 – 3,300 USD.
Notable positions will also be listed as follows.
Support: 3,320 – 3,300 USD
Resistance: 3,350 – 3,371 USD
SELL XAUUSD PRICE 3349 - 3347⚡️
↠↠ Stop Loss 3353
→Take Profit 1 3341
↨
→Take Profit 2 3335
BUY XAUUSD PRICE 3301 - 3303⚡️
↠↠ Stop Loss 3297
→Take Profit 1 3309
↨
→Take Profit 2 3315
Note
📊 Gold struggles around $3,300: Weak dollar, US-Iran talks and economic data key to directionNote
Note
🔴Gold prices fluctuate ahead of PCE data, amid expectations of Fed rate cuts and easing geopolitical tensions
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🔰| Forex trading
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🧩Consulting on Risk Management
🧩Account management
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🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate
🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.